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Binance and WazirX reportedly in talks to settle their ownership dispute

Binance and WazirX reportedly in talks to settle their ownership dispute

The cryptocurrency exchange WazirX and Changpeng Zhao, the founder of Binance, may soon come to a resolution over their ongoing ownership issue.

Apparently, the attorneys from both exchanges are working with one another in an effort to resolve this issue according to sources familiar with the matter, The New Indian Express reported on August 11.

After the Enforcement Directorate (ED) conducted searches on one of the directors of Zanmai Labs, which operates WazirX, Binance announced in November 2019 that it had purchased WazirX. Binance also confirmed that the 2019 acquisition was restricted to a purchase agreement for certain assets and intellectual property of WazirX.

Controversy over who operates Wazir X

Notably, Binance did not make any investments in Zanmai Labs in the form of equity. The cryptocurrency exchange said that WazirX (including the aforementioned assets) continues to be administered and managed by Zanmai Labs. 

On the other hand, Nischal Shetty, who established WazirX, has been claiming that the company was purchased by Binance and that the latter now controls the WazirX domain name. Shetty said that  “Binance has root access to AWS (Amazon Web Services) servers”.

Interestingly, the two founders engaged in a public argument with one other on Twitter, Zhao said that WazirX’s founding team controls the operations, including user sign-up, KYC, trading, and the initiation of withdrawals. Binance does not have influence over these aspects of the platform. 

“This was never transferred, despite our requests. The deal was never closed,” he said.

Founders apparently not spoken since February

According to the sources, both of the company’s founders have not had any direct contact since February. It is believed that owners were expected to remain for another two years after takeover discussions in 2019 ended up being unsuccessful.

The response that WazirX received from Binance in February to its inquiry regarding the purchase was that the parent firm is in the process of restructuring. 

Elsewhere, sources inside the sector have reported that nine cryptocurrency exchanges, including WazirX, are reportedly being questioned related to Chinese lending applications.

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